The Insurance Development and Regulatory Authority (IDRA) has initiated steps to clear unpaid claims and improve governance and accountability in the insurance sector.
The third phase of the settlement was arranged by the insurance regulator on 4 October where long-pending legitimate insurance claims amounting to BDT263.6m ($2.1m) of 7,641 policyholders were settled across the country.
This brings the total amount settled under this initiative to BDT 639.1m for a total 16,058 policyholders. The IDRA facilitated the first phase disbursement of BDT145.1m to 2,549 life insurance policyholders, followed by a second phase disbursing BDT 230.3m to 5,868 policyholders.
The claim settlement process for the third phase was done directly from the insurance company’s corporate offices under close regulatory supervision. The regulator further stated that the claims funding was mobilised by liquidating company assets and security bonds, assuring policyholders that ongoing verification of remaining legitimate unpaid claims will continue in subsequent phases.
According to recent IDRA data, the outstanding insurance claims across the country stood at BDT70bn, highlighting the scale of the challenge facing the industry.